Pictured above: Bobby Gupta
Stratford-based chartered accountancy firm Murphy Salisbury is
reminding businesses about changes to the levels of tax savings
available through employer-supported childcare schemes.
The new rules will apply to childcare vouchers provided to the
employee by their employer for qualifying childcare as well as
arrangements where an employer arranges directly with a registered
provider to offer qualifying childcare to employees.
At present, both forms of employer-supported children are exempt
from tax and national insurance on the first £55 per week,
while higher rate taxpayers benefit from at least double the amount
of income tax relief received by basic rate taxpayers.
However, from 6 April 2011, any new entrants to such schemes
after this date will receive the same level of tax relief,
regardless of their earnings.
Anyone already in a scheme or who joins one before 6 April will
continue to enjoy their current rate of tax savings indefinitely,
unless they leave the scheme or are no longer eligible to
participate.
Bobby Gupta, tax partner at Murphy Salisbury, said: "The good
news for higher and additional rate taxpayers is that they can
avoid these changes by joining a scheme before 6 April.
"If you are an employer and don't yet have a scheme in place,
then it's not too late to set one up. We can help businesses in
this respect and advise them on how the changes will affect any
employees joining the scheme after the cut-off date."